It was an example. You get more of a price cut the more you order more especially when dealing with individual manufacturers. People don't go through Europa exclusively especially since they stopped carrying certain items. When you are dealing with thousands of orders, a certain % cut in price goes a long way. If you are just starting, wait 4-5 years when you build up an employment staff, have five times the warehouse space, pay workers comp insurance, health insurance, etc....then tell me the price break isn't a big deal over time.
In comparison to a lot of industries, the margins on the retail end is rather small to begin with. When you are small, its quite easy. You can get away with eliminating a lot of expenses. Its the reason so many small companies can start up but how many make it past that initial stage...not many.